Washington, D.C. (April 28, 2025) — As the House of Representatives begins drafting the upcoming budget reconciliation package, the National Council of Farmer Cooperatives (NCFC) today called on lawmakers to permanently extend the Section 199A tax deduction for farmer cooperatives and their member-owners.
“Section 199A is not a luxury — it is a lifeline for farmers, ranchers, and the rural communities that depend on them,” said Chuck Conner, president and CEO of NCFC. “As Congress sets its priorities in this reconciliation bill, ensuring the certainty and stability of Section 199A must be at the top of the list. Failure to act would mean higher taxes on family farmers at a time when input costs are still rising and markets remain uncertain.”
Originally enacted in the 2017 tax reform law, Section 199A recognizes the unique cooperative business model and helps level the playing field for farmers marketing their products through co-ops. Without action, the provision will expire at the end of 2025 — creating unnecessary disruption in the agricultural economy.
“Farmer co-ops are engines of economic opportunity in rural America. Locking in Section 199A permanently would strengthen that engine for the next generation,” Conner said. “It’s time for Congress to deliver.”
About NCFC
Since 1929, the National Council of Farmer Cooperatives has been the voice of America’s farmer cooperatives, representing their interests in legislative and regulatory affairs. NCFC’s members include regional and national farmer cooperatives, which in turn consist of nearly 1,600 local farmer cooperatives across the country. These cooperatives handle, process, and market almost every type of agricultural commodity; furnish farm supplies; and provide credit and related financial services, including export financing. Earnings from these activities are returned to their farmer members on a patronage basis, helping improve their income from the marketplace. Farmer cooperatives also provide over 200,000 jobs, with a total payroll in excess of $12 billion, and contribute significantly to the economic well-being of rural America.
SOURCE: NCFC News Release
